PZ Cussons, the multinational consumer goods company, has announced plans to sell its African subsidiaries, including its Nigerian operations, as part of efforts to mitigate the impact of the ongoing foreign exchange crisis.

The company’s decision follows the significant devaluation of the naira by 70%, which has heavily affected its financial performance.

In its preliminary results for the fiscal year ending May 31, 2024, PZ Cussons confirmed receiving multiple expressions of interest from potential buyers for its African business. The company is considering both partial and full sales to reduce its exposure to the naira’s volatility.

“Over the last 12 months, we have made continued operational progress and delivered against the strategic priorities set out at the start of the year, against the backdrop of macro-economic challenges,” PZ Cussons said in its preliminary results published on its website for the year ended May 31, 2024.

“At the same time, we have taken the important first steps to transform our business and maximise shareholder value, by refocusing our portfolio on where we can be most competitive.

“The period was marked by a 70 per cent devaluation of the Nigerian naira, which has had significant implications on our reported financials. We have worked hard to mitigate the impact of this on the group, while continuing to serve Nigerian consumers who are facing unprecedented inflation and economic difficulties.”

PZ Cussons noted the challenges posed by macroeconomic conditions in Nigeria but stressed its commitment to serving Nigerian consumers, despite the economic difficulties and inflation. The company’s UK Personal Care division, however, reported a notable improvement with double-digit revenue growth.

Regarding its Nigerian operations, PZ Cussons recorded a foreign exchange loss of £107.5 million, primarily due to the devaluation of the naira. The company’s Nigerian subsidiary, PZ Cussons Nigeria Plc, posted a significant loss of N94.78 billion in Q3 2023/24, in contrast to a profit of N11.2 billion in the same period in 2022. The subsidiary also remains in a negative net asset position, with liabilities exceeding assets by N46.4 billion.

In a separate development earlier this year, the Securities and Exchange Commission (SEC) rejected PZ Cussons’ bid to acquire minority shares in its Nigerian subsidiary and delist from the Nigerian Exchange. The company had sought to buy out the remaining 26.73% minority stake but was denied approval by the SEC.

PZ Cussons is now moving forward with its closed period, which began on September 1, 2024, and will continue until after the release of its unaudited financial statements for the first quarter ending August 31, 2024.

Bismarck Rewane, the Managing Director and CEO of Financial Derivatives Company Limited, has forecasted that Nigeria’s economy will expand by 3.5 percent by 2026, bringing the nation’s gross domestic product close to $400 billion.

He shared this information during the Access Bank Customer Forum held in Lagos on Thursday.

 “The Nigerian economy will grow at 3.5 per cent (approximately $400bn). Nigeria is on track to becoming the second-largest economy in sub-Saharan Africa,” Rewane said.

He mentioned that the nation’s foreign exchange auction system would improve in efficiency, with unrestricted foreign reserves expected to hit $20 billion.

“There will be an efficient forex auction system, and unencumbered foreign reserves will hit $20bn,” he noted.

Rewane forecasted that inflation would fall to 22 percent by 2026, anticipating a yearly decrease in the monetary policy rate to 20 percent. This reduction is expected to result in a drop in the amount of non-performing loans within the banking sector.

“We will see inflation drop to 22 per cent, and the MPR is likely to come down to 20 per cent, which will reduce bad loans,” he explained.

Even with these encouraging developments, Rewane cautioned that the naira is expected to exchange at N1,550 per dollar in the black market, highlighting intervention funds, remittances from abroad, and exchange rate regulations as crucial elements influencing the currency’s value.

Rewane attributed these enhancements to intervention funds, remittances from the diaspora, and policies aimed at adjusting the exchange rate.

“These gains are driven by intervention funds, remittances, and adjustments to exchange rate policies,” he noted.

He stated that total factor productivity is projected to grow to 2.6 percent by 2026, an increase from 2.4 percent in 2024, and that the nation’s trade balance is anticipated to reach $9.3 billion, up from $8.42 billion.

“Total factor productivity will increase to 2.6 per cent, and our trade balance will grow to $9.3bn,” he stated.

Rewane forecasted that petrol prices would settle at N900 per litre, supported by a reliable supply ensured by production from the Dangote refinery and modular refineries.

“We expect petrol to stabilise at N900 per litre due to increased production from Dangote refinery and modular refineries,” he said.

Here’s a paraphrase of your sentences:

He also estimated that the stock market capitalization could increase to N58 trillion, following the inclusion of major companies like Dangote Refinery and the Nigerian National Petroleum Corporation.

Regarding commodity prices, Rewane forecasted that a crate of tomatoes would be priced at N20,000, a bag of rice would cost N75,000, and a bag of beans would hit N110,000 by 2026.

The head of FDC highlighted that inflation continues to be a significant obstacle for Nigerian businesses, impacting their profit margins.

Additionally, the Minister of Finance and Coordinating Minister of the Economy mentioned that Nigeria’s foreign reserves have experienced a net inflow of approximately $2.35 billion into the Central Bank.

“There has been a net inflow in the first seven months of this year of about $2.35bn every month,” Edun stated, adding that the increase had played a key role in stabilising the naira in the forex market.

“We also have foreign exchange liquidity. The gross reserves are up,” the minister continued.

He attributed the growth to the government’s efforts, saying, “On the fiscal side as well, government revenues are growing.”

Edun emphasized that the country’s tax-to-GDP ratio was at 10%, with revenue to GDP at 15%, and urged increased investment in infrastructure and social safety nets to improve these low figures.

Taiwo Oyedele, Chairman of the Presidential Committee on Fiscal Policy and Tax Reforms, voiced concerns about the current economic outlook, comparing it to the more optimistic projections made by Bismarck Rewane.

“Our projection is slow, and I do not pray that Bismarck’s projection comes to pass,” Oyedele said.

He emphasized the challenges of divestment, inadequate education, and increasing unemployment, pointing out that the Nigerian currency had depreciated in value by ten times more than the Kenyan shilling.

He emphasized the importance of making decisions based on data.

“We must leverage data and evidence to ensure it serves our interests,” he stated.

Oyedele mentioned that the Federal Government aims to lower corporate income tax in the upcoming years. He also noted that the government seeks to lessen the tax burden on businesses while focusing on improving collection efficiency to boost revenue.

The Central Bank of Nigeria (CBN) has scheduled its 297th Monetary Policy Committee (MPC) meeting for September 23 and 24, 2024, at its headquarters in Abuja.

This follows the last meeting held in July under the leadership of the central bank’s governor, Olayemi Cardoso, where the Monetary Policy Rate (MPR) was raised by 50 basis points to 26.75 per cent.

The increase aimed to combat inflation and create a favourable environment for foreign investments.

The upcoming meeting comes after a year of aggressive rate hikes totalling 800 basis points to address rising inflation, which eased slightly to 32.15 per cent in August due to improved food supply.

The CBN has reaffirmed its commitment to orthodox monetary policies aimed at further reducing inflation.

Nigerian Breweries Plc has announced the launch of its N599.1 billion Rights Issue, aimed at addressing overdue foreign exchange commitments and repositioning the company for improved performance.

The brewing giant is offering 22.61 billion ordinary shares at N26.50 each to existing shareholders, allowing them to purchase 11 new shares for every five held as of July 12, 2024. The Rights Issue, which began on September 2, will close on October 11, 2024.

During the “Facts Behind the N599.1 Billion Rights Issue” presentation held at the Nigerian Exchange Limited (NGX), Managing Director Hans Essaadi explained that currency devaluation and higher interest rates have significantly impacted the company’s financials, leading to losses.

He, however, stressed the long-term viability of investing in Nigeria and expressed confidence that the Rights Issue would restore profitability and enable the resumption of dividend payments.

“These are tough times for our business. We started expanding our facilities two years ago, for which FX commitments were required, with a view to future-proofing the business. This led to our incurring a substantial debt due to the devaluation of the naira. Despite this challenge amongst others, we believe that investing in Nigeria is the right thing to do as the long-term fundamentals remain strong” he said.

He added that the company’s expansion into the wine and spirits market, following its acquisition of Distell Wines and Spirits Nigeria Limited, is part of a broader strategy to create long-term value for shareholders.

The Chief Executive Officer of NGX, Jude Chiemeka, commended Nigerian Breweries for utilising the “Facts Behind the Figures” platform to present its strategic business recovery plan.

He noted that the transparency and operational updates shared by the company are crucial in fostering market activity and investor confidence.

Company Secretary and Legal Director Uaboi Agbebaku also explained that the majority of the funds raised will go toward settling outstanding FX obligations, reducing the company’s exposure to future currency devaluations. The remainder will be used to lower naira-denominated debt, thereby decreasing interest expenses.

Nigerian Breweries, a member of the Heineken Group, is Nigeria’s largest brewing company and produces well-known brands such as Heineken, Maltina, Amstel Malta, and Gulder from nine breweries across the country.

Former US president Donald Trump, along with his sons and entrepreneurs, late Monday, launched a cryptocurrency platform but provided few details.

Little was revealed about the Trump family crypto project during a two-hour online presentation other than an offer to let people buy digital “tokens,” giving them a vote in platform decisions.

The event went ahead as planned despite an apparent assassination attempt against Trump on Sunday at his golf club in West Palm Beach, Florida.

World Liberty Financial intends to offer services based on so-called decentralised finance, a mechanism that eliminates the need for an intermediary such as a bank to carry out transactions with a third party, the politics-laced discussion indicated.

Decentralised finance, or DeFi, is based on so-called blockchain technology, which keeps a theoretically open but tamper-proof record of transactions.

World Liberty Financial will enable users to lend or borrow cryptocurrencies to or from one another, a service already offered by many platforms, one of the best-known of which is Aave.

The former president’s son, Donald Trump Jr. touted this as “the start of a financial revolution,” during a session streamed on X, formerly Twitter.

Zachary Folkman and Chase Herro, the linchpins of the project and established cryptocurrency entrepreneurs, said the platform would primarily use “stablecoins,” which are backed by a traditional currency, most often the dollar.

As a result, they are free from the sometimes brutal fluctuations experienced by digital currencies untethered to real-world money.

World Liberty Financial wants to attract the masses to cryptocurrencies, creating a platform easily accessible to people, Folkman said.

Project leaders said they would sell tokens that give owners the right to take part in the governance of the platform, with 63 per cent of them offered to the public, 20 per cent going to the founding team and the rest set aside as rewards for users.

No timetable for the project was disclosed.

During his presidency, Trump referred to cryptocurrencies as a scam but has since radically changed his position, presenting himself as a “pro-bitcoin president” if elected in November.

In so doing, he is standing in opposition to the Biden administration, which is seen as a proponent of regulating the sector.

Vice President Kashim Shettima said Nigeria has embraced the Halal economy, and is hoping to leverage the opportunities to add the sum of $1.5bn to the country’s GDP by 2027.

Shettima revealed this as he attended the Nigeria Halal Economy Stakeholders engagement program in Abuja on Wednesday.

The program with the theme ‘Building A Vibrant Halal Economy: Unlocking Nigeria’s Potential’ seeks to stimulate Nigeria’s economy by enhancing more investments in the Halal market.

Halal is an Arabic word for lawful, permit or permissible.

There are currently over one hundred Halal-certified products in Nigeria.

According to available records, the global Halal economy has hit $7tn and is projected to grow to $7.7 by 2025.

Shettima further said the federal government will explore the opportunities that the halal market offers.

According to him, the Halal economy holds vast potential that aligns with the economic agenda of President Bola Tinubu.

He noted that Nigeria will target high level markets by developing a comprehensive Halal strategy.

He, however, noted that Halal has no relationship with any religious agenda.